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Grupo Bimbo
2
Grupo Bimbo (“GB”) is one of the largest bakeries in the
world and one of the largest packaged food players with
presence in 19 countries
Listed on the Mexican Stock Exchange since 1980
Market cap of US$10.6Bn2
Investment grade credit ratings:
Baa2/BBB/BBB (Moody‟s/Fitch/S&P)
Strong Brand & Broad Product Portfolio
Leading Global Bakery Company
Over 8,000 products and more than 100 renowned
brands of a wide variety of baked goods, salted snacks,
confectionary, wheat tortillas and packaged food
LTM Key Financial Figures as of 4Q11 (US$ mm)1
Revenues US$10,750mm
EBITDA US$1,219mm
1. LTM figures as of December 31, 2011 (1Q11+2Q11+3Q11+4Q11)
Converted to US$ using the LTM average rate of 12.4395
2. As of February 27, 2012. Converted to US$ using the FX rate of $12.89
3
Broad Asset Base
1. Control Group: Shareholdings of founders, their families and management
2. Asia’s results are included in Mexico’s results
3. POS: Points of sale
Control Group1 Float
Central &
South America
76% 24%
Europe
Company Structure
MexicoUnited States Asia2
3
Plants Routes Countries POS3 Associates
156 +50,000 19 +2 million +127,000
4
Leader in Core Product
Categories in Key Markets
1. Source: Company Research
2. LTM figures as of December 31, 2011 (1Q11+2Q11+3Q11+4Q11) Converted to US$ using the LTM average rate of 12.4396
4
United States
Leader nationwide
#1 in premium brands
#1 in English muffins
#1 portfolio of Hispanic
brands1
Strong regional brands
Mexico
#1 in packaged baked
goods
#1 in pastry chain
#2 in cookies and
crackers
#2 in salty snacks
#2 in confectionary
Portugal & Spain
#1 in packaged
baked goods
Leading brands
in sweet baked
goods and snack
categories
Central & South
America1
#1 in packaged
baked goods in 14
countries
China1
Pioneer in developing
packaged baked goods
in Beijing and Tianjing
Mexico64%
U.S.35%
LatAm1%
Iberia-1%
EBITDA Mix(US$1.2Bn)2
Mexico46%
U.S.40%
LatAm14%
Iberia0%
Revenue Mix
(US$10.7Bn)2
Current Mix
as of
December
31st, 2011
5
00s
90s
80s
1945
70s
1 plant
10 distribution trucks
2 product-portfolio
50s
60s
2011
Ac
ce
lera
ted
In
tern
ati
on
al E
xp
an
sio
n
Successful Growth CaseAcquisitions Have Been a Key Component Driving
Growth
…
5
5
Reinvestment policy & strong balance sheet as a main growth driver
Successful growth story through a combination
of organic growth, strategic acquisitions
combined with a conservative financial policy
Acquisitions have been a strong driver of growth
across the packaged food industry
Strong track record of integration
Development of leadership position in high growth
markets
6 6
Key Success Drivers
Over the last decade GB shifted from a strong local player to a leader in the Americas
Innovation
&
Deep Consumer
Understanding
Experienced
Management Team
and Strong
Corporate
Governance
Strong Financial
Performance &
Responsible
Financial
Management
Long Run Player
in a
Very Attractive and
Non-Cyclical
Industry
Exceptional &
Unparalleled
Distribution
Network
Strong Corporate
Identity
Brand Equity
One of the
Leading Baked
Goods Company
in the World
7
+
+
7
Leading Baked Goods Company in a
Very Attractive and Non-Cyclical Industry
10,750
10,329
8,121
2,773 2,7701,732
2,171
12,921
LTM Revenues in US$Bn1
1. Bimbo LTM figures as of December 31, 2011; Kraft´s biscuit business represents approximately 19% of total revenues, LTM
figures as of December 31, 2011; Yamazaki excludes revenues from retail and confectionary segments, LTM figures as of
December 31, 2011; Flowers Foods LTM figures as of December 31, 2011; IBC LTM figures as of December 13, 2008 (not
audited); Weston Foods segment refers to the fresh and frozen baking company located in Canada and frozen baking and
biscuit manufacturing in the U.S., LTM figures as of December 31, 2011
2. Datamonitor, 2009; Packaged bread (volume) refers to the pre- packed bread usually produced at industrial facilities
Resilience to economic downturns
Non-discretionary consumer
products
High consumption frequency
Attractive
Industry
Fundamentals
Highly fragmented industry (products &
players)
Major large scale players account for
<12% of global market share
Short shelf life of product makes
industry local
Key Success
Drivers for
Large Scale
Players
Scale and diversification
Strong franchise and brand equity
Product quality
Innovation capabilities
Distribution
Industry
Competitive
Dynamics
75%
36%
22%20%
14%
6% 5% 4% 2% 2% 1%
US
Port
ugal
Spai
n
Mex
ico
Colo
mbi
a
Vene
zuel
a
Uru
guay
Braz
il
Arge
ntin
a
Chile
Peru
Packaged Bread Penetration2
8 8
Strong track record of creating,
nurturing and managing brands
Achieved leadership in core product
categories in key markets
Portfolio of brands allows to capitalize
market and population growth
Brands for every meal, every occasion
and every consumer group
Powerful brands adapted to local
environments
Extraordinary Consumer Awareness of Brands
Innovation is a key determinant to achieve
strong local positions
Strategies attuned to consumer‟s taste and
needs based on deep consumer understanding
Ability to keep up with evolving consumer
trends
Six innovation and nutrition institutes for new
and better product development
Some products launched by Grupo Bimbo have
defined the industry‟s course
Grupo Bimbo has built an unrivaled international
portfolio of brands fueled by first class innovation
Mexico City
Lerma
Fort Worth, TX
Greenwich, CT
Bay Shore, NY
Sao Paulo
Mexico United States Brazil
Strong Brand Equity along with Innovation
& Deep Consumer Understanding
9
Exceptional Distribution Network
9
GB‟s DSD1
network is one of the largest fleets
in the Americas and represents a major
competitive advantage with a significant
leverage potential
50,000 distribution routes
Unique expertise in moving high volume of
products through a high rotation capillary
distribution system
Reaches more than 2 million POS
Attuned distribution model to each channel
GB operates 156 production facilities
Unmatched network of facilities with latest
technological equipment
Relentless focus on low cost manufacturing
World Class Manufacturing Unparallel Distribution Network
Grupo BimboDistribution Model (Company owned)
≈80%
Client Base Structure (Sales by channel)
2 ≈70% Modern
Manufacturing location and distribution
reach are key for local execution
1. DSD refers to Direct Store Distribution
2. Modern Channel includes, among others, Supermarkets, Warehouses, Clubs, C- Stores, etc.
Traditional channel refers mainly to Mom & Pops
10
Board of
Directors
Corporate
Practices
Committee
(3 independent
members)
Finance &
Planning
Committee
(7 memebers, 1
independent)
Compensation
& Benefits
Committee
(5 members, 1
independent)
Roberto Servitje
President
Daniel Servitje
CEO
Javier A.
González
President of
Bimbo
Gabino Gómez
President of
Barcel
Gary Prince
President of
Bimbo Bakeries
Experienced Management Team
and Strong Corporate Governance
Guillermo
Quiroz
CFO
Governance
Identity, Corporate Culture & Citizenship
Management
10
Pablo Elizondo
Senior
Executive VP
Javier Millán
Personnel
Miguel Angel
Espinosa General Manager
of OLA
José Manuel
González General Manager
of Bimbo Iberia
Audit
Committee
(5 independent
members)
Positioned the Company as market leader in
the products and countries where present
Proven track record of stability and sustainable
growth
Developed innovative ideas and best practices
in manufacturing
Successfully completed and integrated 38
acquisitions over the last 10 years
Corporate Governance aligned with shareholders‟
interest
40% of board members are independent
4 corporate committees
GB ranks among the most respected
companies of the world1
Reputation built on a strong corporate identity
and brand equity
Key component of GB‟s corporate identity is
its company-wide Social Responsibility
Program
Complies with WHO‟s Global Strategy on
Diet and Physical Activity & Health
1. According to the Reputation Institute (September 26, 2011)
11
5,8356,615
7,375
8,6299,274
10,750
2006 2007 2008 2009 2010 2011Iberia Latin America U.S.
712791
880
1,173 1,224 1,220
2006 2007 2008 2009 2010 2011
Strong Financial Performance…
Revenue Growth (1) EBITDA Growth (1)
(US$ in millions) (US$ in millions)
12.2%
EBITDA Margin
____________________
(1) Figures converted to US$ using: year end exchange rate for 05 - 07 and average year exchange rate for 08 - 11
Strong and stable cash flow generation
11
15.4%
5.1%
3.7%
12.0%
15.0%
7.8%
3.4%
11.9%
15.5%
7.6%
3.0%
13.6%
16.5%
7.0%
11.5%
13.2%
16.6%
4.7%
10.9%
11.3%
15.2%
1.1%
9.8%
GB
MX
U.S.
LatAm
Mexico United States Latin America
4.8% 25.4% 25.0%
‟06- „11 CAGR:
12 12
Mexican Peso crisis United States recession United States recessionAsian crisis
Best-in-Class Execution + Resilient Industry = Financial Stability Over Time
Δ%
9.77.0 8.2 9.3 9.7 9.9 10.3 9.7
7.2 7.1 8.09.3 9.2 8.9 8.9
10.4 9.78.1
13.0
9.512.3 13.5 13.8 13.7 14.1 13.6
10.7 10.3 11.112.8 12.2 12.0 11.9
13.6 13.211.3
53.3
48.6 47.951.2
53.1 54.8 56.2 56.753.7 53.3 53.0 54.0 53.4 52.8 51.1 52.8 52.8 51.2
0
10
20
30
40
50
60
70
80
90
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EBIT Margin EBITDA Margin Gross Margin
4.0 5.1 2.8 3.6 3.4 3.9 5.1 9.1 5.4 8.5
28% 27% 14% 32% 79% 59%
4.0 3.4 3.1 2.8 3.3 3.8 6.3 7.2
-22% -15% -6% -12% 19% -14% 7% -12% -31% -15% -15%
170%
Wheat prices
$US/bushel
Strong Financial Performance…
13
1.2x 1.1x
0.7x0.9x
2.4x2.2x
3.1x3.3x
3
0.6x0.4x
0.2x0.4x
2.0x 1.9x
2.8x
2005 2006 2007 2008 2009 2010 2011
Total Debt/EBITDA
#REF!Net Debt/ EBITDA
…and Responsible Financial
Management
Highlights
Flexible and healthy capital structure
Secured US$ 1.3 billion syndicated loan (April 2011)- Refinanced
debt and partly funded Sara Lee‟s acquisition
Term- out of US$800 million of 2012 banking facilities through senior
notes due 2020
Achieve rapid leveraging
Target Debt/EBITDA < 2x
Strong commitment to Investment Grade ratings
Baa2/BBB/BBB (Moody‟s/Fitch/S&P)
Strict management of working capital and disciplined Capex policy
1x depreciation
Conservative dividend policy
Responsible risk policy
Mitigate exposure to raw material cost fluctuation
Conservative approach towards F/X and interest rate fluctuations
Use of derivatives only as risk management instruments
Dividends 2
0.9% 0.6% 0.7% 0.7%1.0%
Dividend Yield
(US$ in millions)
13
Leverage 1
0.5%
0.7%
25 30 3344 52
40 48 56
62
33
00
00
0
2004 2005 2006 2007 2008 2009 2010 2011
1.1%
2.2%
0.5%
____________________
1) Debt/EBITDA ratio in MXN; If computed on USD as of December 2011 is 2.8x.
2) Figures converted to US$ using the FX of the day dividends were paid
3) Pro forma for Weston Foods, Inc, acquisition
14
____________________
1) As of February 28, 2012, FX: 12.8779 MXN/USD; Does not include debt at subsidiary level
14
58
388 388 388
19885 800 800
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Local Bonds Syndicated Loan Euros Loan International Bonds
•Average Life: 6.6 years
•Total Debt: US$3,106mm
•Av. Financing Cost: 4.5%
…and Responsible Financial
Management (pro forma February 2012)
Amortization Schedule1Debt Structure1
1,222 1,222 1,222
283
1,600
3,105
Local Bonds Bank Facilities International Bonds
Total
39%
52%
9%
Fix95%
Float5%
Instrument Amount(US$ millions)
Currency Average Life
Bank Facilities 283 USD 3.1 years
Bonds 2,823 MXN – USD 7.0 years
Debt denominated in:
USD 95%
EUR 5%
By Type
Grupo Bimbo issued:
January 2012: US$800 million of 4.50% notes due 2022 under the Reg-S Rule
February 2012: Ps 5,000 million Certificados Bursátiles (domestic bonds) at a fixed rate of 6.83% with a 6.5 year tenor
Current undrawn committed medium-term facilities for US$1,500 million until 2017.
15
Grupo Bimbo ranks among the 20 most respected companies in the world (1)
Its reputation is built on a strong corporate identity and brand equity
Key component of Grupo Bimbo‟s corporate identity is its company-wide Social Responsibility Program
Strong Corporate Identity
Corporate Social Responsibility (CSR) Program & Sustainability
Commitment to
our Associates
“Safety is our main priority”
Commitment to the environment
(e.g. introduction of biodegradable
packaging and hybrid delivery vehicles)
Commitment to our
society (e.g. environmental
& conservation projects and
microfinance opportunities)
Commitment to the consumers‟
health (e.g. elimination of trans fat
acids, smaller serving sizes,
addition of functional ingredients)
____________________
(1)In the 2009 survey of the Reputation Institute ranking of the world's largest companies in terms of reputation, Grupo Bimbo placed 17th –
standing out as a company with an excellent reputation for the 4th consecutive year. For additional details: http://www.reputationinstitute.com
Effective sustainability efforts are cross-functional & successfully executed across all brands
CSR translates as a competitive advantage
Grupo Bimbo understands that there is no conflict between doing well (financial impact) and doing good (social & environmental impact)
15
16
Why Grupo Bimbo?
16
Value BIMBOStock Price
2006
13.52011
28.47
+ 111%
vs
+ 40% IPC
- 2% DJI
- 11% SPX
Consistency and focus on core business
Grupo Bimbo (“GB”) is one of the largest bakeries in
the world and one of the largest packaged food players
with presence in 19 countries
Stable cash flows
Strongly positioned in Local & International Indexes
IPC (Prices & Quotations Index),
Sustainability Index and others.
MSCI
Mexico
International
“We Believe and We Create”
17
Strict profit reinvestment policy
Strong investment grade credit metrics
17
BBB | Baa2 | BBB
MxAA+ | Aa1.mx | AA+(mex)
S&P Moody’s Fitch
Why Grupo Bimbo?
Successful deleveraging history
0.9x0.9x1.1x
2.5x
1.8x1.5x
1.2x 1.1x
0.7x
3.3x
2.4x2.2x
2.8x
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Debt / EBITDA (computed in US$)
Responsible financial management
• Flexible and healthy capital structure
• Achieve rapid leveraging: Target Debt/EBITDA < 2x
• Strong commitment to Investment Grade ratings
• Strict management of working capital and disciplined
Capex policy: 1x depreciation
• Conservative dividend policy
• Responsible risk policy
CAGR
„06 – „11
Revenues: 13%
EBITDA: 11.4%
Top Notch of
Asset Base&
Successfully completed and integrated more than
38 acquisitions over the past ten years&
Financials by Region
&
Recent Acquisitions
19
28,334 28,828 29,571 30,431
117,163
29,561 30,233
32,314
41,624
133,732
1Q 2Q 3Q 4Q 2010/2011
Sales '10 Sales '11
4.1%
GB - Quarterly Highlights
Revenue Growth (GB) EBITDA Growth (GB)
(MXN$ in millions) (MXN$ in millions)
3.5%
Integration of Sara Lee in US and Spain
Effect of previous price increases
Good volume in Mexico and Latam, except
for the US (but with a lower decline than in
previous quarters)
FX effect
19
3,572 3,602 4,292 4,002
15,468
3,218 3,1534,207 4,596
15,173
12.6% 12.5%
14.5%
13.2% 13.2%
10.9%10.4%
13.0%
11.0% 11.3%
1Q 2Q 3Q 4Q 2010/2011
EBITDA '10 EBITDA '11
EBITDA margin '10 EBITDA margin '11
Distribution efficiencies in Mexico
Commodity pressure in Mexico
New routes & manufacturing facilities in
US and Latam
9.0%
36.8%
14.1%
20
14,300 14,062 14,443 15,075
57,870
15,328 15,32316,461
17,256
64,368
1Q 2Q 3Q 4Q 2010/2011
Sales '10 Sales '11
9.0%
Mexico – Quarterly Highlights
Revenue Growth (Mexico) EBITDA Growth (Mexico)
(MXN$ in millions) (MXN$ in millions)
7.2%
20
More efficient SG&A expenses
Commodity pressure
2,009 1,9772,684 2,957
9,628
1,972 1,804
2,7903,242
9,808
14.0% 14.1%
18.6%19.6%
16.6%
12.9%11.8%
17.0%
18.8%
15.2%
1Q 2Q 3Q 4Q 2010/2011
EBITDA '10 EBITDA '11
EBITDA margin '10 EBITDA margin '11
14.0%
Effect of previous price increases
Healthy volume growth across the portfolio
All channels registered good growth
14.5%
11.2%
21
1,346 1,449 1,3881,015
5,197
1,1801,333 1,315
1,448
5,276
11.8% 11.9%11.4%
8.4%
10.9%
10.7%
11.6%10.9%
7.5%
9.8%
1Q 2Q 3Q 4Q 2010/2011
EBITDA '10 EBITDA '11
EBITDA margin '10 EBITDA margin '11
11,434 12,202 12,163 12,07511,01711,492 12,045
19,255
53,810
1Q 2Q 3Q 4Q 2010/2011
Sales '10 Sales '11
47,875
-5.8%
59.5%
12.4%
USA - Quarterly Highlights
Revenue Growth (USA) EBITDA Growth (USA)
(MXN$ in millions) (MXN$ in millions)
-3.6%
21
Integration on November of “NAFB” business of
Sara Lee
Effect of previous pricing
Growth across most categories
FX effect
Volume decrease but with a lower decline than in
previous quarters
More efficient SG&A
Margin dilution and costs related to the
integration of Sara Lee
Ongoing investments in expanding the
distribution network
-1.0%
• Sara Lee acquisition: 32.0%
• Contribution from IO´s: 14.3%
• Organic Growth: 13.2%
(9.9% FX effect)
22
3,240 3,297 3,672 3,999
14,207
3,943 4,2024,639
5,784
18,568
1Q 2Q 3Q 4Q 2010/2011
Sales '10 Sales '11
20.3%
OLA - Quarterly Highlights
Revenue Growth (OLA) EBITDA Growth (OLA)
(MXN$ in millions) (MXN$ in millions)
13.9%
22
Volume growth
Effect of previous price increases
Double digit organic growth
Higher commodity costs
Sales and distribution expenses, new plant in
Brasilia
207177
231
45
657
6232
120
201
6.4%5.4%
6.3%
1.1%
4.6%
1.6%0.8%
2.6%
-0.2%1.1%
1Q 2Q 3Q 4Q 2010/2011
EBITDA '10 EBITDA '11
EBITDA margin '10 EBITDA margin '11
24.1%
44.6%
30.7%
-14
Organic growth:28.5%
25.6%
23 23
Recent Acquisitions - Each transaction is
driven by strong strategic rationale and business
case, resulting in significant value creation
Acquired for an all-cash purchase price of US$709 million (Initial
value: US$959 million), which includes US$34 million in assumed
liabilities
Attractive acquisition, which will add scale, diversify the brand
portfolio and complement the geographic footprint
Identified synergies of US$150 million to be achieved by 2014
Sara Lee North American Fresh Bakery - Earthgrains
Super Premium/
Variety
Premium
Sandwich/ White
Regional/ Mass
Specialty
Ethnic
Hispanic
1. Includes plants to be divested
Implied transaction multiples (c)
FV/LTM Revenues: 0.35x
FV/LTM EBITDA: 9.1x
FV/Synergized EBITDA: 3.1x (d)
Synergies(d) Pro
Forma(b)
Net revenues (US$ mm) 3,701 2,036 5,737
EBITDA (US$ mm) 406 78 150 634
Margin 11.0% 3.8% 11.1%
Routes 8,480 4,700 13,180
Associates 14,000 13,000 27,000
Plants 34 41 75
(a)(a)
____________________
a)LTM as of June 30, 2011
b) Figures are pre consent decree divestitures
c) Multiples based on US$709mm enterprise value and LTM figures as of June 30, 2011;
assumes no tax benefits and proceeds or impact from divestitures associated with the
Consent Decree agreed with the DOJ
d) Assuming US$150 million synergies by 2014
Sara Lee: 411
BBU: 34
24 24
Recent Acquisitions - Each transaction is
driven by strong strategic rationale and business
case, resulting in significant value creation
Sara Lee Spain and Portugal Fargo Brands
Acquired for an all-cash purchase price of
€115 million
Entry to sizeable market through
established brand leader
Market leading brands in the bread, sweet
baked goods and snack categories
Implied transaction multiples:
FV/LTM Revenues: 0.4x
FV/pro forma LTM EBITDA(a): 6.7x
This acquisition will further strengthen
Grupo Bimbo‟s regional profile and growth
strategy in Latin America
Achieved leadership in the market
5 production plants, 1,600 associates in
Argentina
____________________
a) Pro forma EBITDA of €17mm as of June 30,2011
25
Grupo Bimbo Today
Pro Forma
Pro Forma
including
synergies
Net revenues (US$ mm) 9,901 2,036 395 12,332
EBITDA (US$ mm) 1,206 78 24 1,308 1,458
Margin 12.2% 3.8% 5.9% 10.6% 11.8%
Routes +44,800 +4,700 +800 +50,300
Plants 107 41 7 155
Associates 111,300 +13,000 +1,900 126,200
____________________
a) Figures as of June 30, 2011 converted to US$ using an exchange rate of $12.2550; Includes LTM figures for Fargo as of July, 2011
b) Figures as of June 30, 2011, exclude synergies and consent decree dispositions
c) Pro forma figures as of June 30, 2011, converted to US$ using an exchange rate of €1.4002. 2011 Sales: €292mm; pro forma Ebitda: €17mm (considering a full year of
cost savings initiatives undertaken by seller
d) Expected synergies of US$150mm by 2014
(a) (b) (c) (d)
25
26
Thank you!
26
27 27
During this presentation, we have made statements about the
Company‟s future plans and prospects that constitute forward-
looking statements.
Actual results may differ materially from those indicated by
these forward-looking statements as a result of various factors
and undue reliance should not be placed on these forward-
looking statements. We cannot ensure that actual results will
not be materially different from those expressed or implied by
these forward-looking statements.
In addition, any forward-looking statements represent our
estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While
we may elect to update forward-looking statements at some
point in the future, we specifically disclaim any obligation to do
so, even if our estimates change.
